News update: Finfluencers on the SFC regulatory radar
The Hong Kong Securities and Futures Commission (SFC) is continuing its engagement with a global regulatory initiative targeting unlawful activities by finfluencers [see link]. In this update, Pádraig Walsh from our Fintech practice looks at the SFC’s growing focus on online investment content and the increasing cross‑border reach of finfluencer‑driven misconduct.
Context
Finfluencers are social media personalities who use their platforms to promote financial products and share insights and advice with their followers. Almost by definition, finfluencers seek to persuade and induce the retail public in respect of trading activities. There is an obvious regulatory concern when objective factual presentation and appropriate investment analysis are discarded in favour of unauthorised financial promotions and personal opinion.
Finfluencing is not a new phenomenon. The SFC recognised the influence of digital channels on investors’ perceptions and financial behaviours in respect of virtual assets in its ASPIRe regulatory framework in early 2025, and committed to being vigilant and taking enforcement action against reckless activity that causes risk and harm to the public.
The key challenge remains enforcement. The online medium of finfluencing through social media platforms to global audiences presents jurisdictional challenges. The SFC may wish to adopt a regulatory framework to encourage finfluencers to contribute constructively to educate the public and advocating the best practices. However, there is a need for any framework to move forward in step with international developments and progress.
Regulatory initiatives
The SFC has actively participated since inception in the Global Week of Action against Unlawful Finfluencers organised by the International Organization of Securities Commissions (IOSCO). The SFC and the Hong Kong Investor and Financial Education Council also contributed to an IOSCO Report on Finfluencers [link], which includes a detailed Good Practices section to guide securities regulators globally on regulatory approach and enforcement.
In April 2025, the SFC commenced a thematic inspection to assess the compliance of securities brokers with applicable regulatory requirements when engaging finfluencers and digital platforms to market financial products and services.
The SFC has undertaken enforcement actions against unlawful finfluencer activities. In one prosecution, an SFC licensed representative was convicted for providing investment advice in his personal capacity in a Telegram subscription-based chat group [link].
The SFC has increasingly focused on early detection and prevention of unlawful finfluencer activity. The SFC has strengthened its proactive surveillance of online platforms, including through the use of technology‑driven monitoring tools to detect suspicious social media posts and accounts engaging in unlicensed promotions. The SFC has also worked directly with major social media platforms to facilitate the prompt removal of problematic content, social media posts and profiles impersonating public figures and promoting unauthorised investment products.
In parallel, the SFC has continued to place emphasis on investor education and awareness.
ASPIRe’s “Re” pillar: collaboration as a regulatory tool
The SFC’s approach is consistent with Pillar “Re – Relationships” under its ASPIRe regulatory roadmap for the virtual asset market. The relationships pillar focuses on empowering investors and industry participants through education, engagement and transparency, while promoting informed participation and constructive regulatory dialogue.
Initiative 11 under the ASPIRe regulatory roadmap recognised the growing influence of finfluencers as a new channel of investor engagement. The initiative contemplates a regulatory framework to promote responsible financial communications, accountability and investor awareness. No specific development on a regulatory framework has been announced by the SFC. The relationship pillar emphasises close engagement and coordination with overseas securities regulators. We expect that a regulatory framework in Hong Kong will occur in line with international developments, so there is convergence in the regulatory approach to an issue that transcends jurisdictional boundaries.
Key takeaways
The latest regulatory developments of the SFC serve as a timely reminder that:
• global coordination is becoming a core feature of financial regulation, particularly in digital and online markets.
• financial services intermediaries and investors should not assume that influencer‑based activities fall outside traditional regulatory scrutiny.
• governance, monitoring and contractual controls around online promotions are increasingly critical.
The SFC’s regulatory approach underlines that effective regulation in the digital age requires ongoing vigilance and informed investor participation. Financial services intermediaries relying on digital marketing or influencer‑based outreach should be aware that regulatory expectations are converging globally, particularly where content is accessible by investors in multiple jurisdictions. As the SFC continues to operationalise the ASPIRe roadmap, we expect international collaboration – especially in enforcement and supervisory engagement – to play an even more prominent role in shaping regulatory outcomes for Hong Kong‑facing businesses.
For more details about ASPIRe, please refer to our article “ASPIRe: Looking back and ahead on the regulatory roadmap for virtual assets in Hong Kong” at this link.
Pádraig Walsh and and Christie Yau
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Pádraig Walsh
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Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication. This article was last reviewed on 31 March 2026.